Apple Q2 revenue $111.2B, EPS $2.01; Services set record

Apple reported $111.18 billion in revenue and $2.01 diluted earnings per share for its fiscal second quarter, covering the three months ended March 28. Services revenue reached a record $30.98 billion while iPhone revenue was $56.99 billion, narrowly below the $57.21 billion analysts had projected.

The results exceeded analyst forecasts for revenue and EPS, with LSEG estimates at $109.66 billion and $1.95, though the iPhone shortfall marked Apple’s second miss in three quarters. Product revenue totaled $80.21 billion, up from $68.71 billion a year earlier, and Services rose from $26.65 billion to $30.98 billion.

Apple’s board approved a $100 billion share buyback. The company reported operating cash flow of more than $28 billion for the quarter and said its active installed device base reached all-time highs across major product categories and regions.

Total cost of sales was $56.40 billion, producing a gross margin of $54.78 billion. Product costs increased to $49.18 billion from $44.03 billion, and Services costs climbed to $7.22 billion from $6.46 billion. Research and development expenses rose to $11.42 billion and selling, general and administrative expenses reached $7.48 billion, bringing total operating expenses to $18.90 billion.

Operating income was $35.89 billion, up from $29.59 billion a year earlier. Other expense fell to $52 million from $279 million, leaving income before taxes of $35.83 billion. Apple paid $6.26 billion in taxes and reported net income of $29.58 billion, compared with $24.78 billion in the prior-year quarter. Basic earnings per share were $2.02; diluted EPS was $2.01.

Regional revenue rose across markets: Americas $45.09 billion, Europe $28.06 billion, Greater China $20.50 billion, Japan $8.40 billion and the rest of Asia Pacific $9.14 billion. By product line, Mac revenue was $8.40 billion, iPad $6.91 billion and Wearables, Home and Accessories $7.90 billion.

For the first six months of the fiscal year, Apple reported $254.94 billion in total net sales, with product revenue of $193.95 billion and Services of $60.99 billion. Six-month operating income was $86.74 billion and net income was $71.68 billion.

Apple CEO Tim Cook described the quarter as the company’s “best March quarter ever,” noting double-digit growth across every geographic segment and record March-quarter iPhone revenue driven by demand for the iPhone 17 lineup along with an all-time high for Services. CFO Kevan Parekh highlighted cash generation, stating the quarter “generated over $28 billion in operating cash flow and drove new March quarter records for both operating cash flow and EPS.”